Why Merger Arbitrage Hedge Funds May Have It Made In 2019

Although the last few months of 2018 were gruesome for most hedge funds, some strategies did better than others, as usual. One strategy that’s starting to capture investors’ attention is merger arbitrage, which did hold up better when most other strategies failed. Q4 hedge fund letters, conference, scoops etc One example of this is Carlson Capital’s Black Diamond Arbitrage fund, which follows an event-driven strategy focused mostly—although not exclusively—on mergers and acquisitions. The fund has managed to post positive returns even during times of market upheaval. Now one firm argues that this year could be the year merger arbitrage strategies…